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According to the New Classical Macroeconomists,the Gap Between Actual and Potential

Question 26

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According to the new classical macroeconomists,the gap between actual and potential output is a result of


A) perfectly inflexible wages and prices.
B) a horizontal short-run aggregate supply curve.
C) the inability to accurately estimate depreciation when measuring national output.
D) anticipated changes in the money supply.
E) random forecasting errors.

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